Category: Articles

Moneymaking customer segmentation requires treating different segments differently. If different segments are treated the same, what is the point of having different segment Knowing why and how to treat each customer segment requires understanding of the potential in marketing data. The most precious data for marketers is hidden in their own databases. The dilemma is that marketers may not know how to look at their own data to release the potential that will help them communicate more effectively with their customers and prospects. Finding the right segmentation is half the challenge. The other half is knowing how to use them to improve profitability. Here are 11 of the most valuable tips to improve customer segmentation to increase profitability. All of them won't apply to any one company; but some of them…

Before turning your hard-earned business/brand over to a marketing consultant, you’ll need to schedule a sit-down and inquire some questions—from fundamental to painstaking. It probably goes without saying, but a face-to-face meeting which has a prospective consultant, advisor or marketing manager is a must. Relying only on recommendations from your most trusted friends and family members won’t suffice; it is ultimately up to you to make certain your business/brand are safe and being put to perform to fulfil your specific goals. So what do you need to know? Here’s a list of questions to allow you to prepare for the initial meeting: (more…)

All companies fear instability and the possibility of a severe market downturn. However it is during these periods when the best companies show something better than simple survival skills. Downturn separates out the bad and mediocre, as a result leaving fewer companies standing in good stead to carve up the market when things get good again. So let's talk about a new and different way to seek new and different customers. These fifteen tips are really quite simple yet are so often missed. Pass the tips on. Better yet, put them in practice and be ready to handle the endless stream of new customers. Tip 1 Develop partnerships for your business. First, tally up all your marketing assets of what you can offer to a potential partner in terms of…

Customer retention programmes have historically had insufficient priority in most sectors, but then the forces affecting customer churn, and therefore the need for retention focus, have never been so great. The idea is not new. What is new is the approach. What is now being witnessed is a market increasingly commoditised and far more susceptible to competition - from other players and from new media. Customer knowledge and confidence have had a significant impact: it has become so much easier to compare and to swap products. Changing sales structures and wearing away of face-to-face interaction have helped to dilute or eradicate conventional 'loyalty'. What direction does this give the services marketer? It leads the way to a re-examination of profit drivers and a critical evaluation of current programmes. The business…

Customer retention is ultimately driven by value. Even the best segmentation, targeting, positioning, creative messaging or promotion with flawless execution will fall flat in the absence of value. In developing a plan to maintain and upgrade a customer base it is necessary then to build on solid foundation. Then, and only then will the steps unlock the door to greater customer retention and overall organizational success. To succeed, customer retention must be a top-down, company-wide initiative. Truly committing to customer retention is hard work, because it affects virtually every aspect of your organization. But the ultimate payback in sustainable growth and profitability makes the effort worthwhile. The path to customer retention involves six key steps. (more…)

In early 2010 Patrick (of course I have changed his name) a friend who manages few companies was frustrated with some of the marketing outcomes. I promised to help Patrick clear his frustration but only if he poured me a nice glass of red. We discussed as how time and again novice marketers, even marketing veterans, make costly mistakes that result in poor performance of their marketing campaign. You don’t need me to tell you this, but common marketing mistakes can be avoided with adequate planning, attention to detail, and ongoing measurement and evaluation. Personally I feel that marketing is critical to the success of every business. Unfortunately, many businesses discount the effect it can have, and they forego their marketing efforts for other activities. Or they make one or…

Simply put, Ambush marketing occurs when a company signs on to sponsor an event as official sponsor, and a rival hijacks the mind space through backdoor means. It is a concept that describes the actions of companies who seek to associate themselves with a sponsored event without paying the organizers. The ambush consists of giving the impression to consumers that the ambusher is somehow affiliated with the event. Ambush marketing can provide some, if not most, of the benefits of a legitimate, paid-for sponsorship at relatively little cost. See the Nike ad here A recent article in the The Sydney Morning Herald certainly highlights as how clever you have to be to gain an advantage when you use ambush as a strategy. (more…)

Impulse buying has fascinated me for quite some time now. It is quite peculiar that most of the website and research around this topic highlights the negative impacts on consumers and none or very few people highlight how the impulse buying strategy actually can be exploited by businesses boosting their bottom-line. Promoting impulse buying behaviour The business implications are fairly obvious. If businesses wish to promote impulse buying, they should create an environment where consumers can be relieved of their negative perceptions of impulse. Businesses should stress the relative rationality of impulse buying in their advertising efforts. Similarly, they should stress the non-economic rewards of impulse buying. Additionally, businesses can make the environment more complex, further straining consumers' abilities to process information accurately. Such techniques as stocking more merchandise, creating stimulating atmospherics, and increasing…

In comparison to younger people, people in the mature market do this: save/invest more; spend more on luxury products and services; shop during morning hours; prefer “one-stop” shopping; consider shopping to be a social event; are very convenience-oriented; patronize reputable/traditional outlets; seek personal attention and special services such as valet parking and gift wrapping; choose products based on quality and brand name; are less price conscious and deal prone; use credit as often; are as likely to show non-significant responses to sweepstakes and telemarketing; and complain less when they are not satisfied with something they have bought. So how do we convert these into profits? Read on to see the typical 4 Ps of marketing for the seniors market. (more…)

Engagement marketing aims to engage people. It encourages them to participate in the evolution of a brand. Customer engagement and conversations are what marketing is all about. Rather than looking at consumers as passive receivers of messages, engagement marketers believe that consumers should be actively involved in the production and co-creation of marketing programs. Recently I read an interesting article "Brands fail to follow rules of engagement" in Marketing Week. I was always aware of engagement marketing but I needed to dig a bit deeper to write something about it. Engagement is a marketing approach that—in contrast to traditional brand and direct marketing strategies—allows a brand’s customers and prospects to shape the company’s marketing. People choose what messaging they will receive, and in what channels. Engagement marketing begins at the moment…